# USD: Fed's balance sheet expansion is creating a less favorable environment for the dollar - MUFG - Forex Crunch

> MUFG says the Federal Reserve plans to keep expanding its balance sheet at least through the first half of 2020, and the dollar index has traded below its 200-day moving average for most of December. Total Fed assets reached USD4.166 trillion by December 25.

- Date: 2019-12-31 · published 2019-12-31T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/55756-usd-fed-s-balance-sheet-expansion-is-creating-a-less-favorable-environment-for
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Continued dollar weakness would support dollar-priced feed commodities and export competitiveness for US grains and meal, though the effect is typically gradual.

## Read by commodity

- DXY: bearish ▼
- SOY: bullish ▲
- CORN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-08-28 | [USD: Fed has set up the dollar for further weakness - MUFG - Forex Crunch](https://feedsoft.ai/events/51792-usd-fed-has-set-up-the-dollar-for-further-weakness-mufg-forex-crunch.md) | -0.5% | +1.0% |
| DXY | 2020-02-28 | [EUR/USD: Central banks to favor the euro - Forex Crunch](https://feedsoft.ai/events/54804-eur-usd-central-banks-to-favor-the-euro-forex-crunch.md) | -0.5% | +4.3% |
| DXY | 2024-09-30 | [US Dollar Forecast: Fed’s easing weighs on the Dollar](https://feedsoft.ai/events/28507-us-dollar-forecast-fed-s-easing-weighs-on-the-dollar.md) | +0.9% | +3.1% |
| DXY | 2026-07-31 | [Dollar falls over 1% for July as U.S. data, Fed paint a muddy picture on inflation By Investing.com](https://feedsoft.ai/events/8420-dollar-falls-over-1-for-july-as-u-s-data-fed-paint-a-muddy-picture-on-inflation.md) | -0.1% | -1.1% |
| DXY | 2017-01-31 | [Trump Trouble: USD/JPY remains on the back foot - Forex Crunch](https://feedsoft.ai/events/73229-trump-trouble-usd-jpy-remains-on-the-back-foot-forex-crunch.md) | -0.6% | -0.6% |
| CORN | 2024-07-31 | ['Need Greater Confidence In Inflation..': US Fed On Possible Rate Cut In September; What It Means For Gold, Dollar?  - Goodreturns](https://feedsoft.ai/events/29146-need-greater-confidence-in-inflation-us-fed-on-possible-rate-cut-in-september.md) | -0.2% | -4.2% |
| CORN | 2023-03-21 | [Dollar, Sterling Fall Ahead Of Fed, BoE Meetings Amid Banking Stress](https://feedsoft.ai/events/37061-dollar-sterling-fall-ahead-of-fed-boe-meetings-amid-banking-stress.md) | +1.5% | +1.4% |
| CORN | 2017-07-31 | [USD: Tide of sentiment has turned against the dollar – BBH — Octa](https://feedsoft.ai/events/70150-usd-tide-of-sentiment-has-turned-against-the-dollar-bbh-octa.md) | -1.3% | -8.0% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2019/12/31/usd-feds-balance-sheet-expansion-is-creating-a-less-favorable-environment-for-the-dollar-mufg/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.